10th Mar 2016 09:01
LONDON (Alliance News) - Magnolia Petroleum PLC Thursday said two new wells drilled on the Mississippi Lime formation in Oklahoma have produced initial production rates that will add 38 barrels of oil equivalent per day to the company's production portfolio.
Magnolia holds a 1.86% net revenue interest in the wells, which are operated by US firm Chesapeake. The gross production from one of the wells currently sits at 1,056 barrels a day whilst the second well is producing 952 barrels a day.
However, Magnolia said production from the two wells is expected to decline from initial elevated levels which are based on a 10 day average rate.
The two new wells mean Magnolia is now interested in 213 producing wells in the US.
Magnolia shares were up 4.4% to 0.188 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.